The local currency rose to an intra-day high of 74.84 against the dollar and fell to an intra-day low of 75.07.
Rupee pared initial losses to close almost flat at 74.87 against the dollar on Monday as heavy FPI inflows into IPOs were offset by a stronger dollar in overseas markets and firm crude oil prices. A strong rally during trade today helped the local unit pare losses.
The local currency rose to an intra-day high of 74.84 against the dollar and fell to an intra-day low of 75.07. It eventually closed 1 paise above its last close. On Friday, it had closed at 74.88 against the dollar.
Brent crude futures rose 0.81 per cent to $84.40/barrel.
Markets were range-bound ahead of the Federal Reserve meeting this week.
In the overseas markets, most other Asian and emerging market currencies had come under pressure earlier in the session, following a jump in the dollar index on Friday and this Monday afternoon in the European session.
The dollar index rose 0.02 per cent to 94.14 on Friday. It is used to gauge the greenback's strength against a basket of six currencies.
BSE Sensex closed 1.40 per cent or 831.53 points higher at 60, 138.46. NSE Nifty closed 258.00 points or 1.46 per cent higher at 17,929.65.
(With inputs from PTI)